Groundnut (Arachis hypogea) is amongst the most valuable leguminous cash crops grown in rainfed areas. The role of plant growth promoting rhizobacteria (PGPR) containing ACC-deaminase is considered vital promoting plant roots under moisture deficit conditions. Under these circumstances a research experiment was conducted at the farm area of Soil and Water Conservation Research Institute, Chakwal in association with PMAS Arid Agriculture University Rawalpindi for 3 years consecutively during 2015-2017. The main objective of the experiment was to exploit and evaluate the impact of PGPR deaminase activity on yield of groundnut crop. The four treatments included farmer practice (no compost & inoculums), with inoculums, with compost and compost + inoculums in 4 replications under RCBD. The improvement recorded in the pod yield of groundnut was 12 %, in the number of pods plant-1 by 20 % and the shelling percentage by 2 % by application of the treatment inoculum + compost. Conclusively, it was ascertained that PGPR containing ACC-deaminase application is an effective approach to enhance groundnut crop production and soil characteristics of degraded soils under rainfed scenario.